# C_2022119EN.01000302.xml

| 14.3.2022 | EN | Official Journal of the European Union | C 119/3 |
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14.3.2022

EN

Official Journal of the European Union

C 119/3

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Judgment of the Court (First Chamber) of 27 January 2022 — European Commission v Kingdom of Spain

(Case C-788/19) (1)

(Failure of a Member State to fulfil obligations - Article 258 TFEU - Free movement of capital - Obligation to provide information concerning assets or rights held in other Member States of the European Union or the European Economic Area (EEA) - Failure to comply with that obligation - Limitation - Penalties)

(2022/C 119/04)

Language of the case: Spanish

Parties

Applicant: European Commission (represented: initially by C. Perrin, N. Gossement and M. Jáuregui Gómez, acting as Agents, and subsequently by C. Perrin and N. Gossement, acting as Agents)

Defendant: Kingdom of Spain (represented by: L. Aguilera Ruiz and S. Jiménez García, acting as Agents)

Operative part of the judgment

The Court:

| 1. | — | Declares that, by providing that the failure to comply with or the partial or late compliance with the obligation to provide information concerning assets and rights located abroad entails the taxation of undeclared income corresponding to the value of those assets as ‘unjustified capital gains’, with no possibility, in practice, of benefiting from limitation; |
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1.

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Declares that, by providing that the failure to comply with or the partial or late compliance with the obligation to provide information concerning assets and rights located abroad entails the taxation of undeclared income corresponding to the value of those assets as ‘unjustified capital gains’, with no possibility, in practice, of benefiting from limitation;

| — | by subjecting the failure to comply with or the partial or late compliance with the obligation to provide information concerning assets or rights located abroad to a proportional fine of 150 % of the tax calculated on amounts corresponding to the value of those assets or those rights, which may be applied concurrently with flat-rate fines, and |
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by subjecting the failure to comply with or the partial or late compliance with the obligation to provide information concerning assets or rights located abroad to a proportional fine of 150 % of the tax calculated on amounts corresponding to the value of those assets or those rights, which may be applied concurrently with flat-rate fines, and

| — | by subjecting the failure to comply with or the partial or late compliance with the obligation to provide information concerning assets or rights located abroad to flat-rate fines the amount of which is disproportionate to the penalties imposed in respect of similar infringements in a purely national context and the total amount of which is not capped,
  the Kingdom of Spain has failed to fulfil its obligations under Article 63 TFEU and Article 40 of the Agreement on the European Economic Area; |
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by subjecting the failure to comply with or the partial or late compliance with the obligation to provide information concerning assets or rights located abroad to flat-rate fines the amount of which is disproportionate to the penalties imposed in respect of similar infringements in a purely national context and the total amount of which is not capped,

the Kingdom of Spain has failed to fulfil its obligations under Article 63 TFEU and Article 40 of the Agreement on the European Economic Area;

| 2. | Orders the Kingdom of Spain to pay the costs. |
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2.

Orders the Kingdom of Spain to pay the costs.

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(1)  OJ C 432, 23.12.2019.

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